Earnings call transcript Q4 2022

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Operator

Greetings. Welcome to the Gaming and Leisure Properties, Inc. Fourth Quarter 2022 Earnings Conference Call. At this time all participants’ are in a listen-only mode. A question-and-answer session will follow the formal presentation. this being note, Please Instructions] conference recorded. is [Operator

conference your host, will now Jaffoni. to the turn I Joe over

You may begin.

Joe Jaffoni

and quarter Thank you. Gaming earnings distributed fourth joining on is Relations available website you thank press in call yesterday XXXX the afternoon Good morning, and at everyone, Leisure www.glpropinc.com. and webcast. release The section Investor for our Properties

Act in On contain forward-looking may to your the Securities today's Private questions call, management's prepared remarks of Litigation Reform as and defined XXXX. answers statements

that matters may to materially address Forward-looking to that from subject today. statements and uncertainties are cause risks discussed actual differ results those

may related non-GAAP and financial statements AFFO. revenue, as financial as such operating FFO and Forward-looking income include those measures well guidance, as to

no future. As statements to any forward-looking the a management's discussions encourage its as more the We with current reminder, represent in statements to assumes filings in the obligation forward-looking release. statements the company to forward-looking risk company's the definitions factors company's related estimates, and including the detailed release, contained review listeners the earnings financial the reconciliations of update the earnings SEC, measures and non-GAAP in contained in as and XX-Q well and

Senior are Burke, Chief Chief Peter call Financial Officer. Officer and Desiree joined President call, our Demchyk, Treasurer; Chairman Moore, Chief Chief Carlino, Vice Chief Ladany, Senior and and and Investment Brandon President are Matthew morning's and this Properties. Also On Counsel Vice General Executive Secretary; and we Gaming of Development today's Officer by Leisure joining Operating Officer; Steven Officer, and

ahead. Peter to to go it's please my pleasure Carlino. over that, call With the Peter, turn

Peter Carlino

you, Joe, thank and Well, morning, everyone. good

line. Difficulty] [Technical there's Let noise on the me

of in And several the dialed have the affect flow that of me that won't outset from at of presentation. smooth the Let office. our us hopefully, announce out

pleased our to and eventful very positive release. announce considerable in published here detail at documented GLPI another with We year are

includes this we notably fixed rent detail volatility we've we which the of agreement look Some that reaching more Entertainment, through rent with the at new will go in the in PENN call experienced as highlights, which limits a significantly past.

define providing agreements previously that in properties with Illinois signed Illinois, announced Joliet, funding along PENNs a which hotel be and tower for in PENN. a Las the we've Columbus, in we Additionally, fund long-term with arrangement Aurora, Ohio delighted second the new the doing we're pretty relocation at this to hotel the This will and stuff, supporting of by Vegas. and M exciting is

discuss And Rhode on we as we'll quarter, sheet, to Tiverton, probably detail, our this balance and we worked this last Valley's hard additionally, closed property in Also perfect in quarter and Rock Island year more Biloxi. Valley's Hard stay lowest us to now option ever range the still X.X% to if do enjoyed leverage -- we with within now wish leverage we've achieving and things discussed. to do X% the we that in have that using the positioning past

ask I've put going to things some some numbers I'm behind these Desiree just to outlined. of that

Desiree, go So ahead. please

Desiree Burke

of million. collectively rent year-over-year adjustments, which cash real by approximately Valley's which of This lease, drove The $X.X million. Island increase a rental properties, XX reported and estate million the on the Thank everyone, and joining of XXXX, by from ‘XX Black percentage increase $XX income Hawk transactions, Tropicana rent, which LV Rock land $X income million, rental rental fourth approximately escalators total as well growth our increased which leases, revenue million, the by $X added results of which the driven combination by our you, rent and approximately and and for of recognition of cash quarter record exceeded and cash morning, thanks $XX our million. We call. over increased for was income addition lease quarter's $X in and good adjustments QX increases of higher investment as levels non-cash gross-ups, the drove straight-line Peter, income Live! an

primarily reversal decline in resulting approximately declined period our sale expense performance a expenses TRS improved credit gaming operating and million, Our of to XXXX from due million $XX of losses to property and $X operations. of our on a prior the provisions G&A related Cordish leases for

XXXX. see across annual $X We escalation strong building master continue $X.X million, to rent recognized fourth our the coverage which realized million the which leases. In was we base increased PENN on by full ratios in quarter, of lease,

of rents In existing our created master connection lease, new from master The revenue XXXX a uncertainty future with are portion streams to variable tenant. Meadows will transactions, lease our percentage as leases. this rents PENN decline it amended XX.X% terminated providing Perryville in additional ‘XX of and our from which the in cash the a that and into approximately X.X% of PENN the visibility

From a balance had very fourth a sheet perspective, busy quarter. we

X.X shares we program, $XXX During sold our of common raising million the of quarter, million. stock net proceeds under ATM

agreement shares, forward the XXXX million $XX.X sale and net of settled X.X issued raising proceeds million. February of also in We

notes, We in proceeds used $XXX coming to of fund November the million, these the were due redemption of which X.XXX% ‘XX in early partially February of ‘XX.

leverage under EBITDA. is times just now Our X net

we new today. $X as into at-the-market unused billion a entered program, of remains addition, In which

per share $X.XX does OP this $X.XX Please unit. In from we share full-year today's impact for to future guidance of OP provided diluted the units, AFFO XXXX guidance include release, diluted and any that transactions. in not note per ranging

that adjustment new for straight-line revenue, will $XX be non-cash, into which modeling For XXXX. in to and to rent it we purposes, included approximately as it deducted changing million, entered for then need our will is is but AFFO XXXX in the be leases non-cash due

XXXX. of of quarter to profits per the and The also company's earnings a per quarter stock $X.XX the declared the on was of a the the dividend common related special completed sale special dividend to we earnings Tropicana $X.XX well building, as is in first as that and I share from profits dividend of like note which share. would third

the will to turn I that, call Peter. back With

Brandon Moore

Matt any like he'd few things I Peter, to If other a had you address? have do further think not, comments?

Peter Carlino

hold. speaker over put I I indeed, on had Yes, it Matt. turned apologies. My to

couple to critical. ahead. So points go know thought Matt, of you a I you were on focus wanted

Matthew Demchyk

Thanks, Sure. us environment In like uncertainty, remind monetary joining for earnings an to that in significant the business and volatility model this in thanks I environment, Peter, want season. GLPI's cross busy built and mind. environments everyone everyone with the currents, for economic with was and

So our is platform benefit a opportunistic. that shareholders resilient can from strong, and

levels the for ballast strengthen hard worked strong as and our growth. balance long a our to We've liquidity and both and also on foundation leverage a sheet; serve effort

many various landlord, and our tenant through dialogue the interested with structures solver diligently reputation fund new our we Our a future seeds the growth collaborative potential net of enhancing leverage roster, in to partners long-term to fortify is positions of future that as problem success our At we've the specific that partners. years look of expand sow open assets, past tenant for optionality as end, significant opportunities. also us worked to

per at focused our We've as and got opportunity poised share on value And conversations interest, very table of increasing board. a many X leads capital to the to long-term. over across shareholder role extent, opportunities to stewards for and seat an seriously the resolutely take of We continue the remain intrinsic conversations healthy our the of pounce. we're

to back turn call I'll the Peter. that, With

Peter Carlino

say, what I comment very button very And where have time, we're I today. I about I'm must one ourselves my we thanks, pleased that here. just that don't Well, Matt. all No, find mute on. this editorial well with think says

So let's with the floor questions. to that, open

mics. Somali, would you please the open

Operator

of McGinniss At question Sure. question-and-answer conducting Greg comes session. the questions. from will be And with our this line proceed time, your Please first we a with [Operator Instructions] Scotiabank.

Greg McGinniss

Hey, good morning.

in you bit rent by on just the and appears So a another Just range shares range outstanding end And the utilizing to a end December. in touch your the surprised November story equity? the given math, looking bottom to up where settling what or lease today? you at of forward versus percentage limited guidance you does imply expectations I the on on million of guidance would and ATM range guess stand X low-end driving escalators impact based pretty the And terms of range? you're guidance could the our straightforward be what

Desiree Burke

Yes.

So certainly.

did where in ended that due where I that that forward, in we We was pull mentioned did the that redeemed million from think million shares the repay coming to ’XX. missing that order I we X.X to my notes, early. use begin So as which actually we bond forward, ‘XX we was you're $XXX

think I is that count that you have. So the change biggest share

rate far as high million environment, As the interest I we our debt. have mean rate now variable of to $XXX low,

are as know, rates interest the changing daily. So you

another So we have our do Difficulty] -- that rate interest we to high-end that as difference in as could change our the a well [Technical not is like low-end. for in our up between and happen plan low-end, X% some

and year. on legal and of transactions M&A course just is we due at. about and how think in the some many our transactions on to based and do on item go those review change diligence of work tax we the many third the G&A will on number that And how look things work And

you that the from low and count. missing I range to share the think causing high number be biggest So what's would is the the that in

Greg McGinniss

Okay. that. No, thank you very for much

quick second a second here. Just question

more end visibility the timing you development and respect do kind that with is Now have coming spend? along closer that of into QX, of how we're to to reduce

Steven Ladany

Sure.

Peter Carlino

you Steve, that? why don't take

Steven Ladany

Thanks, Peter. Yes.

been A and we to lot But out. bought chain at in move Baton disruption we the still to scheduling time, have respect in are market. with Hollywood facing the Rouge, So labor and point supply expenditures with Casino associated forward. major timing of are this continuing

be opening think things be could is fourth right, cost our hard don't the by start I It the GLPI of will around timing quarter. And I million. sooner likely to So of but some want of approximation if be point, expectation spend our best to for overpromise. at go sometime this funded $XX

Greg McGinniss

that up a is though guys still the that end Okay. even are getting going the investment, full on spend you return you amount up, right, And spending?

Steven Ladany

was There or conversion whatever Yes. no rent. on to the Correct. cap

spend we'll cap the applied cost yes, rate to get whatever hard ends X.XX% total up. So

Peter Carlino

and Yes. very Valley's impressive. I there, must point still the I at view, it's progress of exciting. wish kind must we operating there. at say recently construction the I looking of looking were pretty admit it's from

exciting. it's partnership in them, I with a going really So terrific quite this project well for be Valley, is to it's its on way, think and

Greg McGinniss

Thanks, Peter.

Peter Carlino

you. Thank

Operator

Our with the Heffern Please of Brad next question. with comes line your from RBC. question proceed

Brad Heffern

the on what seeing if you where to deal everyone. Hey, you're cap maybe was flow just and I expecting through trend. front talk could you're rates curious

Peter Carlino

you Steve, that. Why want that? about mean, do to I take you yes. talk don’t

Steven Ladany

arguably Yes. that of as I'd flow direction. Look, as are There goes, things far we're we've kind coming every different of are deal as from in lots busy Sure. been. say as ever

Some of related. development its

it's Some of domestic.

of seeing opportunity. it's come different in to the related mostly -- it's the transactions of and presenting we're Some all way, not some gyrations markets, sorts our capital

bit I is few kind that going noticed which maybe outperformed has really higher. class the I an cap And by think And it's question, to think a mean, of your to of that our rates that other counterbalance part I taking years. to is, The -- you're get perspective, people. think that little dovetails see float to starting other over from asset last your expectation potentially I

increased But I at the at So as an competition in that. are we're offsetting markets of cost and at coming capital Boston, of you times saw same sector, kind time, least the or example. in the think in and seeing the capital interest for

than see deals two get I higher slightly seen past done cap And in you'll the rates think so at years. do we've

Brad Heffern

potentially updated point Okay, on acquiring some at and Lincoln thoughts the down any road?

Steven Ladany

that in right now, a it's to don't incented -- our reasons effectuate best reasons in would to they our Yes. is look to why likely of number are be a Valley’s receiving position XXXX. do of be, best I see XXXX that there try direction. go expectation XXXX to I I lot that fact, approval that in may event. mean But think a in

expectation So that's here. our

Brad Heffern

Okay, you. thank

Operator

St. Our comes of the next Haendel from question line

Juste question. with Mizuho. Please proceed with your

Haendel St. Juste

I you. capital in back wanted quarter. the to Thank go the morning. to good He, allocation

like quarter. early your while made, guys million You of into while down some $XXX XQ looks you you $XXX could active provide from the including also were million issued cash back the receiving was you very XQ from with Valley’s. also some notes $XXX equity I of about And decisions in million paying the on hoping color

leverage. And you're and sitting lots liquidity so here with great of

us help the some decisions the made in of quarter? guess, I So -- understand the

projects And term? development pipeline. the the do guess, see liquidity have expect I to, over some excess how I poise you the near in you

understand So as balance help us Thanks. philosophy sheet well. the

Desiree Burke

Sure.

had be because, the that as as to to as is XX-year So we wanted we for well that to probably market needed million, repay requiring $XXX by low XX-years, issuing the debt Valley’s. proceeds Valley’s that debt this was the fact love know, we handle, guaranteed really to a us six not you financed transaction, would with live have in something which

had $XXX to million. borrow we So

a was new do that. some use it thought down debt to some order and borrowed we We So equity to prudent in paid debt.

equity So debt there though it Valley’s finance transaction were want Anybody utilized in transaction. the even essence, was some for to... a

Peter Carlino

do So let in not want going was to look, a Desiree, acquisitions sorry. tightrope predictable you long I'm because -- on we of string to there's me ahead? industry, our say go especially walk the that I horizon. a

you raise of So to the when we and we pick be have you we at when money need to in prepared as you given can. time And and take if level not of kind as to unprepared cut can. the are, be temperature cash. where and shop a favorably mean, try what's prudent I any

accept least, some to be. a model with, safety, this that I've and the safety operate And we we'll equitizing, some, that's from for -- place Sometimes drag at because over that it's earlier will, calls investors. I our safer on safety, said

So it says market raise And to that. about have this that are the I was future. hope very we to something were ahead. made debt think way unappealing. short-term opportunistic Desiree obviously what The where needs the prudent explained Obviously, cash. Go about in we

Haendel St. Juste

it. [Indiscernible] Got Got Was Yes, more? there it. go ahead.

Peter Carlino

Anything from...

Matthew Demchyk

little This is taking step a nuance back. add Matthew. I'll a

it’s X of tactically, it's approach with At with really targeting times equity, in we a X.X when issue It's long-term mind. capital. the range a same long-term times leverage view really important Our us. to to remains time, permanent --

use future intro. towards the the our in approximate into wasn't to cash and our of model debt to as add set decision. was might the prefund opportunity It driving the what be I business the mentioned So optionality

opportunities equity very we've at So spot Remember, the or whenever the choices to wish mix. with that punchline debt used to is next, got best extent a unsecured using we've in to tool ever come time a to woven -- loan do we we outcome we've to that have And for strategies the whatever deals, what's best. the more might got the between shareholders. forward choose past, without and chest is, term long-term had fund ATM to also we've as option next leverage those we we that overnights, used get company really, point, artfully the and as together we've more than deep the between Peter's different the to

Haendel St. Juste

you, appreciate Great. perhaps, that color. Separate one Peter. for Guys, question,

can have I the to be people”. Governor for Texas of provides think element mentioned the form of entertainment the day professional other “if way of that he'd open built in experiential it an that assets gaming be a that

legalization as guess, could the a I curious would casinos was of on destination in I opportunity commercial Texas. an your of you if that And see provide So if potential more thoughts you and threat. or

Peter Carlino

sense of would that. nothing material or at My is indeed operators. going opportunity happen. other to do Well, stay certainly our moment one fairly to It -- is not a threat. be But and we for closely an the

betting, teams remember, move involved. that's are feeling so see are Texas, sports the sports betting. first that teams involved a The see I because professional to in have you what may You may

to Flat out happen not my and are line knows. said full I'm somewhere casinos, Texas hope first the from that's lifetime, gaming. my down gets likely think, I've is, But hearing, I and further this I what who round. in sense that always in

Texas anywhere, make is sense want tough. So of Texas can what you not a we on it's around today. But we We'll activity a And are. we my for we're obviously, that is see. -- the stands and state, where any bet eye it. which close but sure worth, any lot. that hoop keep to That's

multistep it's I going a be process. to think

Haendel St. Juste

it. I’ll Got it. Got guys. you, leave. Thank

Peter Carlino

you. Thank

Operator

of with Our comes proceed next your Rich from question question. with the line Anderson SMBC. Please

Rich Anderson

Good morning, everyone. Thanks.

situations. GLPI, four question you of got net walls wonder something a you books Peter, the your every of investments? expanding So probably, that between going and outside horizons? you of the to it's reasonably if short do lot of of deal into this the talked get TRS And you talk you some you of off that if form the in it about Are full lease but it's taking like expanding gaming. quarter in Or through veins. that for think is guys you is poker you got chips sell sort hard -- non-gaming coursing in Are future triple -- those your on going on terms I

Peter Carlino

this a shack And flow, had look a anything. silly used time the the said I the know, now. You at I take we'll is would time windows the mean we've it analogy and have. I've it. demonstrably on we're we cash I goals doors beginning, right problem But beach from again, absolutely terrific if mean and such Look, stable with no and in all anything, that space

as So revenues stand when by me I heap. over rock already our that top at -- go hard said backwards the same solid, many and I've the you're that. to thing. and something many years, It's the offer can Show are of bulletproof

look we we'll cliff at jumping aren't look have off I I with some look, else. probably There's activity. And I that get we week time. But So or somewhere for expect said point presented again, the don't all don't someday, any go or not think without by be we a non-gaming parachute. a the

there anyway. not highlighted, over of couple not And sure said, to equal to is everything hurry to There's we're look we years elsewhere. yet. be next we of the a, anything. find can't opportunity the But But frankly, off, b, Steve go job -- we've first run we're I'm of I've enough our think I quite not to where anything going at are. -- out going as and we're not as that

our enough stick we horizon until don't. So on say to to stuff the see we'll knitting we

Rich Anderson

enough. Okay. Fair

around or smoking were that this about like, I net but the a the in what talk you would wonder question to in Second Atlantic ban case the is be think City that workers it if that bad Do all up? ban would be for when got country. roll good thing a of you a business your legs something the a thing smoking or be you think kind

Peter Carlino

for impact. you mean not We've time And will put really I smoked. again; just somehow a It going a affect can that smoking you operators. smoking going Well, not It to thought won't. an us. factor. GLPI, simple it's gamblers affect a to impose the -- that's have seen It's ban.

going You're doesn't in as it come come it a much and XX% a back, to doesn't see as drop revenue, XX% -- back.

a Now are where the doing states it's that and platforms, qualify building companies so what lot businesses as outside smoking in that to ability of these possible, there long as operate. are do is

Again, facilities very have did and smoking very, this us. But doesn't pretty operating’s clever nice affect gotten some building work.

It lot smoking won't large, affect bans depends But the legislation thing and a go. are on a leave I'll not how us. operators. by the at good that. it for So

Rich Anderson

Yes, addressing for smoking gaming was I it Okay. section yes, how I the the your issue. plays younger, the was to color. on didn't plane when in But really seem space. creative out much remember Thanks we'll a approach a it that see like

Peter Carlino

Well, right I think -- if the smoking. seat were in in the guy think this behind

Rich Anderson

get but one, I quite Thank that didn't you. whatever.

Peter Carlino

welcome. You’re

Operator

line Please Jonas next of comes from your proceed question. question Truist with Our with Securities. the Barry

Barry Jonas

guys. great on hey year. morning. Hi, Good a Congrats

today? you you used target a ago, think years $XXX M&A. think about year Curious of how talk that of like to I about a million

Peter Carlino

quickly. answer Look, I'll just

well you not It I by pretty may can were Anybody want GLPI but a willing I but else to we're -- we the there. side think to year, be stand think in that. opine. on still particular

Steven Ladany

I is $XXX answer, as goal. I in million I mean, second throw mean a I'll think fine I guess. two

that in outperform future. I And it believe would think in past. to that don't we we underperform I the the continue necessarily

for it's think fine target. I So a

different the we expect we PENN put I the transactions to next improvement over out few dollars capital hope years, think for to between of tenants the fund and some that that to different projects.

going I we're there or it. through again be to think

and to of purpose outperforming think that a continued So goal I as it. point continued signs all

Barry Jonas

touch Great. I Great. for cannibalization. iGaming why just don't follow-up, And then a on and

this future and underwriting how question you soon? updated I any or year still plays into Peter, you was may a said curious Any start but or really another too ago, it strategy I thoughts how deals. year Thanks. here Just think it of too like early, asked long-term data. you

Peter Carlino

understand. was reason, No, stay whole where we social bet And is But animals. year ago. -- a provide this are look, people mean, a to people a convenience for going look, I'll iGaming college about the that look, I with feeling that game, for I and you're example. obviously that my on all place may

we'll some around your the sports in not other country. your look game on some bet betting team or like. So experience to But college an that's driveway people that at

the granddaughter time. is what way. Live! gaming. at backwards people Because, you look same and XX-year-old I your you screen look sunglasses down Eagles baseball the Cordis She guy how in other And not at Live. can at is where giant I Where there, dynamism down play. drinking, And the year even but went grand on she want. on crazies the doing my with the are people their a that and well watched Philly all offer that from gambling poker it this person turned don't across did figure to Pack, that this go? trying to way having the play actually, table at is facilities it's social a had a as damned, the experience. look, watch home all the look iPhone, out and have the partying all joined the could

negative I'm but going lot have to a at more think I hell gambling there's all. So on, don't going suggesting effect it's of a a be going to

properties. fact, more convinced that on In the now I'm to bricks-and-mortar

Barry Jonas

Great. Thanks so much.

Peter Carlino

you. Thank

Operator

Jefferies. Please with question. with comes line David Our proceed next question of the from your Katz

David Katz

everyone. for Hi, good my question. taking Thanks morning,

engage have to trying who areas grow well Native land expanding One about about as is you they to contiguous are entities, as and with the and American to might or in more which reservation think I land. continue ask what the off-reservation reservation of on ways more land

opportunities, any, on us of could there is you your pursuit please? potential update if those If

Peter Carlino

such out for at What, you kind and been I recognize legal if We to the area color? way much did of of business figure know, into course, that you've the things don't add a while kind as can the make it a rolls you potential work. Brandon, any opportunity. as look of saddling

Brandon Moore

at I in Yes. looking a gaming. do time tribal we opportunities mean spend lot of

obvious there with to are because dealing protection in can from some think tribes there's the much challenges I on exercise a standpoint the do so you only collateral.

And a of developments are way us, and so it's that doing there's if in or and research to commercial for prudent can see could a asset, project finance we Tribes that a development some our we otherwise invest protect these way in our our that shareholders. investment

So a there's to it's effort for of an not there. that engaged that don't It's obviously We anything that haven't something date. say that we've do But focus done opportunity on. years. in we it's to an number think we

there opportunity think project and there an right I is right with investment. drive, the the the right

David Katz

very much. Okay. Thank you

Peter Carlino

Thank you, David.

Operator

of line Daniel proceed with Capital comes your question. the Please One. with question from Gulino next Our

Daniel Gulino

question. Hey, my everyone. you Thank for taking

me. for one Just

still So services their various a XXXX? Thank U.S. out Are inflation light all in the is run watching there in things operating employers you your are model, for certain locations. all into elevated are large you. tenants you even though

Peter Carlino

any to that opinion our with for not we far kind meaningful own a with tenants catastrophe proportions We're actually be of so the unimagined us down get to it way. really is of in again. it has to my Look, coverage buffered have

that's year a flat-out Anybody mean, losing else tenants. this -- answer, my our not that? I sleep harm else there's have to over have real any about but any thought So anybody

Matthew Demchyk

given coverage it's income at it's I'll we're we of piece very and Yes, something we asset give what on location, about this one, that there's finding of acquisition add margin a thought another disaggregating acquisitions the lot very statements a side, of and point. is angle thoughtful et do appropriate we in to. here the think -- has look the safety history, and and that it's And And operating cetera. when an assessing

Daniel Gulino

you. thank Okay,

Peter Carlino

Thank you.

Operator

with proceed your of Morgan with Kamdem the comes Our Please question. next question Ronald from Stanley. line

Ronald Kamdem

Great.

Just think two data in picture, front, for shown on seeing sort any seen if year-over-year, alarm some no had helpful. commentary One, Thanks. what on it operating the me. gaming by bigger regional But revenue quick I you regional guys be ones means. just any the was down gaming of trends, we've are would of December there just curious XXX%,

Peter - A Carlino

accept any Well, We're information on suggests remember, the publicly get available. we there's privy that nothing what's see don't horizon. we that you a get. But to don't not problem

I think the aberration X% an is that is ignorable.

So we are feel on well, even and that? have all. at any a that before insight general given go tenants thought have doing they long a to any side Anybody the the around have it to way again, we long, our GLPI have --

Desiree Burke

sure. Yes,

we stronger So will we items in it's high an come was that recall and down though XXXX. than down markets, may coming in coverage off we're coverage that even in has regional COVID X% seeing to these And still happened our the also is after strongly feel due that tenants are it all-time what XXXX. -- their rent

that won't of So our in only It impact business -- any is all. perspective in opening we're that noted X.X% remarks variable way. I noticed our at certainly concerned not from that the rent I my

did little So on a impact bit, it have the lease master impact have if we revenues coverage it dropped their at even not that coverage times and GLPI. well an will such tenants at over strong tenants X our

Ronald Kamdem

question was to second going my AFFO the then growth on of And just X.X%. the Helpful. back Great. guidance

that the presumably, sort And organic into drivers? what's or Just of that curious, terms baked into for bumps? baked external growth Thanks. of in rent what's

Desiree Burke

baked XXXX. that in we fixed So will escalators in have happen all

and one or We have with baked did Biloxi in Valleys the Tiverton. the transaction that recent we with

number. baked guidance acquisitions not have in any the We additional XXXX into

Ronald Kamdem

so Thanks from much. Great. it me. That’s

Peter Carlino

Thank you.

Operator

Please of with… Our next question Massocca with comes line proceed from Thalmann. John Ladenburg the

John Massocca

morning. Good

Peter Carlino

Good morning, John.

John Massocca

So at question the different maybe rate from a angle. going cap

rate both capital cap given and last in a cost mid-X% the level of closed regional in interest the a in of cap that's return or seen range. X% we've operators? of expense high in of an couple seen rough kind Do appropriate what for And You've low increases, rate, and be you couple transactions of announced think space to terms of landlords months.

Peter Carlino

But -- do Steve, opine to Matt, not. do want you or you to that. Steve want Probably on

Matthew Demchyk

in. hop I'll

in an kind in flows. to earlier I an of of nuanced Firstly, broader the rate a mean that's And we buy. I of of various around I'd say reasons, like characteristics to things gaming expansion us. for didn't the I rates for than comments is cash appreciating think the for triple-net in stability more Steve's transactions in lot hope that, achievable the with were these work world, seen those you've both reality cap broader

the healthy for to model those can and to come our asset. down going So inputs like, by at to and good spread risk-adjusted we is cost for really like we business asset situations equation, rates of capital news a get the it's our our

John Massocca

a kind of term were you sheet. guess of And that? out to the rough detailed Okay. the And then if balance updated be question do thoughts on on kind it Any what on today, swapping quick would loan? I pricing

Desiree Burke

rate, So to and swap are looked we comfortable at that swap at do out. this that total variable X.X% not we at have debt, rate a time, the our and only have about debt we we intend of

John Massocca

to pricing where Okay. today is thoughts guess last or today broad just… on relative even I pricing is any year,

Desiree Burke

Right.

that looked I time last was three-year it, around swap at X.X%. a the So

John Massocca

much. very Thank That’s helpful. you Okay.

Peter Carlino

Thank you.

Operator

[Operator Instructions] from Robin Our your… with next Please with Farley the comes of question proceed line UBS.

Robin Farley

Great. I wanted a as to ask follow-up. Thanks.

changed how little the field with of other passing transactions competing buyers about bit quarter you it a the two? the the environment and Q&A, reference but made talk to you're sort or of number that earlier a in kind of the Thanks. last those in in of buyers can in have kind terms and of the You appetite for

Peter Carlino

to to other a can transaction crafted we Typically, there. to in of something the lot to it's are obvious place mean I'd clearly not We Yes, transactions business. like say be It's our make are more loses. bidder a comment we great than generally to people, not generally a other make there. be. the Robin. solve auction, interested like flat-out that general in provide a because the last It's were effective. people I a we space some reasons. bidding of issues. lot dollar for don't that Yes, done in I'll we're Most have the my

people that right comment on I it seemingly disagree? that mean things want do affected hasn't was out Steve us we think don't we are that? or after. you Agree many lose there, go but there I to more yet. Steve,

Steven Ladany

Sure. I'll jump or have of number one in then number come in, disappeared. and a who Matt a think have been I competitors senses too. were two and let then Look, say who have of -- there there

through attention. related perspective their ours I it's somewhat markets structures. competitors' and But undeniable total the based in a our is just asset gaining be on and that the performance class that from could think of this capital COVID. performance return based Based our stability funding or on past on

we I and gives may and the going forward. at a performed think our economy think look on be you you is COVID of or what have do to wonderfully views may glimpse forward as through that, But our And and what folks I in a not And may going people to some the sense pretty tenants various back forward. same would good looking true expect case, happen tenants.

you I something don't Matt, add. have to know if So

Matthew Demchyk

mean, I kind it's of interesting.

mispriced would capital the If this then places space. X or the think hassle -- on anecdotally, came asked a of and of that kind better you It's be you a debt to of to opportunities return and last view least the other about a elsewhere. as inside got And or in there thoughtful of lot credit markets the the we based names into landlord. the of would I at some conclusion be that And been were there that anymore. gaming back tent question, to year aren't them and that summer bidding were if look went kind last have June

quiver cost headlines sourcing you gives competitive cost advantage can seen when capital from get I mentioned you that an in equity about us side of scenario. a our debt our all And with rates folks they inflation not of some reliant also you've equity that the think speaks is arrow across our are as aggressively And were. real real perspective bidding from noteworthy those the, in playing of offense now that earlier, things. a on competitive and that we've really the of juice as and from areas got access to interest a where they're where private what's the in time, large lot And clearly that

to to about throughout opportunities. extent same. And backdrop we've again, get stays we're that year thoughtfully use the positioned ourselves So this that we hopeful the

Robin Farley

Great. That’s very helpful. Thank you.

Peter Carlino

Thank you, Robin.

Operator

And our Please the comes question. of next line proceed with from question John with DeCree Securities. CBRE your

John DeCree

Steve, for could potential of Maybe Good the competitors maybe activity. the of rather continue deal type new if morning, Peter kind to you or elaborate activity everyone. wondering than on conversation

existing then of potential remarks, of seeing last Steve, for Is Curious in sellers at you've are M&A? market. the that looking if exit? is we're reasonable in And the similar mentioned bid-ask volume I year, is. potential kind the it parties for think, expectations capital facing couple the it seemingly kind bid you widened deal you've be, quarters. seen maybe of volatility markets I prepared tenants that an looking last Is the the among over any the the has in think transactions. of what follow-up how evolved? mix Curious still or would today, ask given different normalization

Peter Carlino

Steve?

Steven Ladany

sure. Yes,

probably As would kind capital you DOA. particular, markets, than of prior sales the Many of dislocating. processes, which going the those debt in launched not were market, other reach and to are to finality expect,

people. increased cases, debt I of on So different those cost rapidly and capital seller corrected the the markets the from in just expectation was think dramatically reality as that the

had are world So the at everyone to I the same now, through. at they're looking think least lens that things market that coming that

the point So feel at than beginning like they were a year. of last achievable more I things probably little this are

on first that So that commentary my piece. be would

various are I we're life look, respect what But mean, in with current cycle. seeing, places our their within tenants to

grow them So assets whatever looking be type may are available. some of of to with

geographic or stagnant. locations Some looking for certain and are be looking one's no there's certain But sizes. to dialogue

dialogue around them acquisitions. potential have with we So

than into have that many also partnerships and and more with materialized dialogues have tenancy. -- folks relationships We

continue So constructed, be and be achieved. very will to hopeful created I that that's sure to able think make at to transactions we're point, this and we're hard working

Matthew Demchyk

is This Matt.

used was were of us expensive X Let are they an wider some market. comparing me to And debt. guys permanent there you the counterparties Remember, prices thought. against the of say add hey, subset in form that

other that our options of of capital side equation extent moved for certainly cost that's those has an to meaningfully and other us. the The versus of is converge competitiveness favorable all

John DeCree

I color. Thanks, appreciate Matt. the Thanks,

Operator

proceed Our Securities. next question. question Germain comes from the Please Mitch JMP line with your of with

Mitch Germain

think units the the Good should morning. deal? we economics behind the Valley associated with How about OP

Desiree Burke

million, did OP the in million I'm XXX,XXX say sorry, deal. we of sorry, that I XX I issued issued shares, units? units shares. Valleys $XX -- they only So million, only around yes, $XX think, we was

So we've it guidance small that pretty a in is provided. drag, it our is but

Mitch Germain

potentially one any Understood. of for should that me. but funding is And more last assume it in not of ‘XX of back is to part we the event? towards hit a Penn I of guidance, really think then ‘XX starting or

Peter Carlino

know. degree have mean, the high think It's But place, things I hard clear. is are guide we to than where say that of the I to handle some later happen, real not there's good a in I when earlier. they Candidly, on going we a but these would had are you if phases. rather just don't to confidence design real

Steven Ladany

is mean, Steve. I I this -- PENN think, Yes.

start until end projects the public that to open I in think of they sometime are projects to ‘XX, expect that likely four has by not PENN XXXX. with stating been all these but

for us to So take -- the they from day projects. all are one from dollars not these obligated

they do some capital. want access have to would they our So around flexibility when

them just with to it's as kind we're going of dialogue continue we an know. know, soon you'll evolving as So timeline and that

Mitch Germain

And [Multiple the way Speakers]

Peter Carlino

just are look, else [Indiscernible], depending going or on the was company, to their what they is I going at say need upon the later, whatever use it may the not and needs or if long-term own may if the cash will cash it's their they own Look, sooner. money they it. solution run, they had short internally, in but probably be can fund that it

So have we'll how to plays just it out. see

Mitch Germain

on the it. Got Congrats year.

Peter Carlino

Thank you.

Operator

remarks. of And call Peter the end we the question-and-answer session. the have for I'll to back closing reached over now Carlino turn

Peter Carlino

Well, thank has you who everyone very to dialed much. And in thanks today.

to closed going hard be excited and see hope really all very are for us But strong XXXX a a you. eventful about think to working We well. quarter. we out next is year. that as Thank you cross, having Fingers year

Operator

may your you And participation. Thank at disconnect today's your lines this conference, concludes time. and you this for

Gaming and Leisure Properties (GLPI) 24 Feb 232022 Q4 Earnings call transcript